Socialist Policy in Canada
lobe says Teck sees critical minerals rules tightened
2024-07-08 07:21 ET - In the News
The Globe and Mail reports in its Saturday edition that Ottawa is making foreign investment in critical minerals more restrictive as the mining industry seeks capital to develop the raw materials that will be key to a low-carbon economy. The Globe's Jeffrey Jones writes that Industry Minister Franois-Philippe Champagne approved Glencore PLC's $6.9-billion (U.S.) acquisition of Teck's metallurgical coal-mining business on Thursday, attaching a series of conditions. Along with the approval, Mr. Champagne imposed a stricter policy for net-benefit reviews of foreign takeovers of miners with sizable critical-minerals operations. As part of its multibillion-dollar critical minerals strategy, the government listed 31 minerals it deems as important to the transition to a low-carbon economy, such as copper, lithium, cobalt and molybdenum. Steel-making coal is not on the list. The more stringent measures may not have an immediate impact on acquisition and financing activity in the Canadian mining industry. However, it could limit the number of smaller mining companies that may seek to list their shares on the Toronto Stock Exchange -- a concern raised as a result of tougher national-security reviews imposed in recent years.
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